7 signs of failure of the Internet 'preschool'

These are signs of failure of start-up Internet companies drawn from 666 research and surveys of organizations.

7 signs of failure of the Internet 'preschool' Picture 1

First: work half-heartedly

You have decided to set up your own company. Temporary employment for another place has significantly reduced your company's performance and potential.

Many people think they will work at another company, and still set up their own company and determine to only do 'halfway through ' like that until it can raise capital for the company. However, this approach can help them mobilize capital, but it is 24 times less than those who devote their full-time full-time to their own companies. In short, for start-up companies, working full-time is especially important.

Second: Lonely or too big group

After you've decided to devote all your time to the company, the first challenge will be to persuade people with the same spirit to join you. If you can't persuade such a person, or you think that alone can be done, it is a bad sign that the company is hard to succeed. But there are many people in the founding group that are not necessarily good. The ideal number for the founding and operating team is from two to three people.

Companies with a founder often call only 50% of their capital compared to 2-3 people groups. One reason is that there are three things that will divide the mind of the founder's ability: product, business, and capital calls, making it more difficult for a person.

Third: There is no technical expert from the beginning

If you set up a technology company, but in the founding group, there is no one who is good at technology, then you will hardly succeed. Unless the company operates in a purely sales area, otherwise the founding team should have 1/3 of technical expertise, half of the best. However, too many experts are not good.

The first problem when there is no technical expert in the group is that you have no one who owns the entire product of the company. The founders do not understand the product and the employees or advisors do not own them because the company is not theirs. As a result, companies without technical experts in the founding group have average user growth of 3-5 times less, and are slowing to an extended period of 7-8 months.

Fourth: construction of inappropriate products

Once you have an ideal founding group, you should ensure that you follow the market and build products that are suitable for your strengths.

Thursday: Do not redirect or redirect too much

After establishing an ideal working group with suitable products and markets, it is necessary to be determined enough to make the plan a reality, and still be flexible to apply appropriate measures. The chances of you having to change large areas of your business are very high. When actual feedback shows which array doesn't work, you have to change it now. But changing the direction of too much development will cause the company to run the circle. Research shows that founders who only diverted once or twice will have more than 100% user growth.

Friday: Do not listen to customers

Spending time to collect customer feedback significantly increases the probability of making an accurate decision. Companies track their indicators and listen to customers with 400% customer growth.

Saturday: Expand without consolidating the market

Finally, the biggest mistake is that the founders are too impatient to expand the company too early without strengthening the market, as well as improving the process of attracting new customers.